Ok, that should read “Package Insurance”.

I think they should add an option to buy insurance when getting a badge, that would cover losing any materials, or allow cancellations up to the day of the Con. Yes, such a system could be abused, but as more events go to E-tickets, it could work.

I would pay $10 to guarantee that if my stuff is lost, I’m not out over a thousand dollars in airfare and hotel for a Con I can no longer get into.

I'm pretty sure they'll sell you a replacement badge and events tickets if you report yours lost, even when the Con is sold out. So you'd only be out $200 or so depending on what tickets you lost.

https://www.gencon.com/attend/policies#registration

Lost and Misplaced Badges and Event Tickets

Gen Con cannot replace lost, stolen, or forgotten badges and/or event tickets. Please be responsible with your convention materials. Lost, stolen, or forgotten items can be repurchased at full cost (if available). It is recommended you check with the Gen Con Show Office to see if your materials have been turned in to Lost and Found before buying new materials. Gen Con LLC assumes no responsibility for lost, stolen, or forgotten materials.

Use will call if you dont want to risk losing it.

You can still lose stuff after you pick it up at will-call.  So, you lose your stuff Thursday night, you’re now stuck in Indianapolis for 3 more days, unable to get into the Con or attend your events.

The first time badges sold out we had this reply:
https://www.gencon.com/forums/22-general-info-2017/topics/12637-tickets
"To be clear you can repurchase items that are lost, stolen, or forgotten. They are still in the system."

I always do will call because of the replacement policy (which I find ridiculous, FYI). 
That said, I've been curious about one situation that might arise.
What happens if a mailed package is confirmed delivered AFTER someone has left and is on the road/train/flight/shuttle/transporter pad, etc.? It might be confirmed delivered by the time you get there and report it lost, but it wasn't available to you by the time you had to leave for the con. Probably a fringe situation, I know but still, I'm curious how Gen Con would handle that.

Since it's over a month between when they mail the packages and when the Con starts, unlikely that scenario could arise.  It should have been resolved weeks before, unless the person was taking an extended vacation prior to coming to Indy.

To be clear, we will allow you to repurchase lost or misplaced (By you) badges and tickets. They are in the system and have already been sold. If you miss an event then that ticket is no longer available. 

If a USPS packet gets to your late by any acceptable standard, and we can confirm that then we will replace it, as well as any packet that is marked as lost at no cost. We mail these packets out in plenty of time to get to our attendees.
Mail returned to us will be taken to the show and available at Will Call. 

Full Policy Here:

Lost and Misplaced Badges and Event TicketsGen Con cannot replace lost, stolen, or forgotten badges and/or event tickets. Please be responsible with your convention materials. Lost, stolen, or forgotten items can be repurchased at full cost (if available). It is recommended you check with the Gen Con Show Office to see if your materials have been turned in to Lost and Found before buying new materials. Gen Con LLC assumes no responsibility for lost, stolen, or forgotten materials.

Gen Con LLC is not responsible for items lost in the mail (via the U.S. Postal Service) or items marked “delivered” by the USPS tracking system. If you chose to have your items shipped via USPS, we will reprint your badge and event tickets, as long as the USPS site lists your package as lost or not yet delivered. If you chose USPS and the package is listed as “delivered”, you will be responsible for purchasing a new badge and any associated tickets. Any returned mail will be available for pickup at the Will Call kiosk on site.

Mike Boozer
Customer Service & Event Team Manager 
Gen Con LLC 

So, at least that eliminates the not being able to get back into the Con issue, but not the cost.  The other issue was for full refunds even for last minute cancellations.  Things happen, kids get sick, people get injured.  It would be nice if there was a way to not also lose money when that happens... oh yeah, they call it insurance :-)  To prevent scalping, or sneaking in for free, you'd have to mail the entire packet back before you got credit.

They only take 10% off refunds so that is not much to prevent fraud and gaming of the system such as the housing lottery. They even refunded us with GenCon credit AFTER an event was over one year when we missed it because of some unavoidable circumstances.

The GenCon folks are great and the current system works well for me.

You can buy travel insurance from an insurance company.

Gen Con as a company is only like twenty people. They're not going to add an insurance business.

Buy 11 badges at $110, insure each one at $10. Get 11 time slots for the hotel lottery. Book hotels using the best slots of those 11. The next day, return 10 badges for full price less the insurance money ($100). Nice arbitrage opportunity.